After four consecutive declines, the producer price index (PPI) for inputs to residential construction less energy (i.e. building materials) rose 0.9% in January 2023 (not seasonally adjusted) according to the latest PPI report. Price growth of goods inputs to residential construction, including energy, gained 1.4% over the month. Prices have increased 5.1% over the past 12 months. Ready-Mix Concrete The trend… Read More ›
Single-family built-for-rent construction ended 2022 strong with a rising total market share. According to NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 17,000 single-family built-for-rent (SFBFR) starts during the fourth quarter of 2022. This is 6% higher compared to the fourth quarter 2021 total. Over 2022 as a whole, 69,000… Read More ›
During the fourth quarter of 2022, credit continued to become less available and generally more costly on loans for Acquisition, Development & Construction (AD&C) according to NAHB’s Survey on AD&C Financing. To analyze credit availability, responses from the NAHB survey are used to construct a net easing index, similar to the net easing index based on the Federal Reserve’s survey… Read More ›
As of February 14, 2023, there have been two updates to the construction code requirements:
- Prior to February 14, 2023, the State of Louisiana was requiring an Ice & Water Shield underlayment to be installed on roofs around the perimeter. After being presented with information, the Louisiana State Uniform Construction Code Council voted to remove this requirement.
- There has been a requirement for doors separating garages from dwelling units to be installed with a self-closing device in the base code for many years. The state has traditionally removed this requirement in Louisiana. This year, LSUCCC chose to leave the requirement in our state code. It was originally thought to be an oversight; however, LSUCCC voted to confirm the provision is now required in Louisiana. This is a new provision for our local members and the requirement is effective for all new permits applied for after January 1st of this year.
The price and availability of building materials again topped the list of problems builders faced last year, while interest rates (along with general inflation and negative media reports) moved considerably up the list. According to special questions on the January 2023 survey for the NAHB/Wells Fargo Housing Market Index, building material prices were a significant issue for 96% of builders… Read More ›
According to the Federal Reserve Board’s January 2023 Senior Loan Officer Opinion Survey (SLOOS)—conducted for bank lending activity over the fourth quarter of last year—banks reported weaker demand for residential real estate (RRE) loans, home equity lines of credit (HELOCs), and commercial real estate (CRE) loans. Additionally, credit standards tightened across all categories of mortgage loans. Residential real estate credit… Read More ›
